Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Enters into Zinc in Concentrate Streaming Agreement with Nyrstar and Refinances Project Term Loan Facility

Stock Exchange Release
25 January 2010

Talvivaara Enters into Zinc in Concentrate Streaming Agreement with Nyrstar and
Refinances Project Term Loan Facility

Talvivaara Mining Company Plc is pleased to announce that its operating
subsidiary Talvivaara Sotkamo Limited (collectively "Talvivaara" or the"Company") has entered into a long-term Zinc in Concentrate Streaming Agreement
("Agreement") with Nyrstar NV ("Nyrstar") (together, the "Parties") in line with
the strategic guidance communicated at the Company's 2009 Capital Markets Day.

Under the terms of the agreement, Talvivaara will deliver all of its zinc in
concentrate production to Nyrstar until a total of 1,250,000 metric tonnes has
been delivered (equivalent to approximately 2 million tonnes of zinc concentrate
at a grade of 65%). Based on Talvivaara's production plans, the Parties expect a
ramp-up to approximately 90,000 tonnes per annum of zinc in concentrate by
2012, with deliveries occurring over a period of 10-15 years. Deliveries are
expected to commence in February 2010.

Nyrstar will pay a purchase price of USD 335 million for the zinc stream. In
addition, Nyrstar will pay Talvivaara an extraction and processing fee of EUR
350 per tonne of zinc in concentrate delivered (with escalators in relation to
prices of elemental sulphur and propane). The Parties have also agreed the
following price participation:

  * until the later of the seventh anniversary of the agreement or delivery of
    600,000 tonnes of zinc in concentrate, Nyrstar will pay to Talvivaara 10% of
    the LME zinc price exceeding USD 2,500 per tonne (up to USD 3,000 per
    tonne), and 30% of the LME zinc price exceeding USD 3,000 per tonne;and
  * thereafter, Nyrstar will pay to Talvivaara 30% of the excess of the LME zinc
    price above the processing fee of EUR 350 per tonne of zinc in concentrate.


Nyrstar has also agreed to supply to Talvivaara up to 150,000 tonnes of
sulphuric acid per annum for use in Talvivaara's leaching process during the
period of supply of the zinc in concentrate.

The Agreement is subject to certain customary conditions, and completion is
expected on or about 29 January 2010.

With the Agreement, Talvivaara has secured an attractive long-term arrangement
for its zinc by-product production. The USD 335 million upfront payment enables
Talvivaara to completely refinance the existing Project Term Loan Facility,
providing for significantly enhanced strategic and financial flexibility,
appropriate for the Company's risk profile following the successful
commissioning and ramp-up of our operations. The extraction and processing fee,
together with the price participation formula, provides Talvivaara with a stable
and secure cash flow profile and protects the Company's attractive cash cost
positioning.

In choosing to partner with Nyrstar, Talvivaara has achieved a mutually
beneficial agreement for monetising the Company's zinc by-product, complementing
the existing nickel and cobalt off-take agreement with Norilsk Nickel Harjavalta
Oy. This transaction is a further endorsement of the Company's operations by an
established industrial operator.

Talvivaara's CEO Pekka Perä commented:"I am delighted to announce a significant milestone in Talvivaara's history,
allowing the Company to monetise our zinc by-product at attractive terms and to
refinance the Project Term Loan Facility. This Agreement results in a materially
enhanced capital structure for the Company, providing us greater flexibility and
an outstanding platform from which to develop the Company further. I am truly
pleased to announce our long term partnership with Nyrstar, and we appreciate
their recognition of our operations."

Talvivaara will host a conference call at 10:00 UK time/ 12:00 Finnish time on
Monday 25 January 2010. Details to access the conference call are as follows:

UK Free Call: 0800 694 0257
UK Standard International: +44 (0) 1452 555 566
USA Free Call: 1866 966 9439
Finland Free Call: 0800 112 363
Finland Local Call: 0923 114 173

The conference ID is 53007193

A replay facility will be available on the following numbers until 7 February
2010:
Replay Access Number: 53007193#
International Dial in:  +44 (0) 1452 55 00 00
UK Free Call Dial in: 0800 953 1533
UK Local Dial in: 0845 245 5205
USA Free Call Dial in: 1866 247 422

Replay facility available until 7 February 2010:

Replay Access Number: 53007193#
International Dial in:  +44 (0) 1452 55 00 00
UK Free Call Dial In: 0800 953 1533
UK Local Dial In: 0845 245 5205
USA Free Call Dial In: 1866 247 4222


ENQUIRIES

Talvivaara Mining Company Plc Tel: +358 20 712 9800
Pekka Perä, CEO
Saila Miettinen-Lähde, CFO

About Talvivaara Mining Company Plc
Talvivaara is a Finnish mining company operating a large open pit nickel mine in
Sotkamo, Finland. Talvivaara aims to become an internationally significant base
metals producer with its primary focus on nickel and zinc using a technology
known as bioheapleaching to extract metals out of ore. Bioheapleaching makes
extraction of metals from low grade ore economically viable. The Talvivaara
deposits comprise one of the largest known sulphide nickel resources in Europe.
The ore body is sufficient to support anticipated production for at least 46
years. Talvivaara has secured a 10-year off-take agreement for 100 per cent of
its main output of nickel and cobalt to Norilsk Nickel. Talvivaara is listed on
the London Stock Exchange Main Market and Nasdaq OMX Helsinki and is included in
the FTSE 250 Index. Further information can be found at www.talvivaara.com<http://www.talvivaara.com/>.

About Nyrstar NV
The partner of choice in essential resources for the development of a changing
world.  Nyrstar is a leading global multi-metals business, producing significant
quantities of zinc and lead as well as other products (including silver, gold
and copper).  Nyrstar is listed on NYSE Euronext Brussels under the symbol NYR.
For further information visit the Nyrstar website, www.nyrstar.com.


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